FACES OF POVERTY:
THE WORKING POOR
Agenda






Define “working poor”
Overview of the WDC
Profile of the working poor in Racine
Work readiness challenges of the working poor
Case scenarios
Economic impact of poverty in Racine
Working poor?
What does that mean?







The Poverty Line: a household Income of $17,600 a year in 2008.
In 2008, 37.3 million Americans lived in poverty.
5.3 million were among the working poor – those who spent 27 weeks or
more in the labor force, working full-time.
16.4 million Americans who work part-time live at or below the poverty
line.
5.8% of women who work are considered “working poor” while only
4.5% of all men who work are among the working poor.
Younger workers are more likely to be among the working poor than their
older counterparts, due to lower average earnings and higher rates of
unemployment.
More than 5% of the workforce works two jobs to make ends meet, but
still live in poverty.
Sources: U.S. Census Bureau, U.S. Bureau of Labor Statistics
Faces of poverty




70% of the working poor are White.
Black and Hispanic workers
continue to be twice as likely as
their White counterparts to be poor.
More than 1 in 10 people say they
struggle to feed themselves.
Some jobs that pay poverty wage:
home health aide, child care
provider, pre-school teacher, janitor,
and delivery person.
Sources: U.S. Census Bureau, U.S.
Bureau of Labor Statistics, YouTube
(video)
Poverty in the 21st Century: Making
Ends Meet

Voices from the Center for American Progress Poverty
Task Force
Source: YouTube Video
The Racine County Workforce
Development Center







Division of Racine County Human Services
Department
WDC budget is $10 million
Governed by the Racine County Workforce
Development Board
Talent development services
Employs 100+ staff
Partnership organization
Two sets of customers: job seekers and employers
WDC (cont’d)
Universal Services





Resource Room/Career Development Center
Workshop Instruction
Career Discovery Center
Academic Improvement Center
Business Services
WDC (cont’d)
Work-Related Intensive Services







Dislocated Worker/Adult (WIA)
Seniors
Veterans
Children First Program
Food Stamp Program
W2
Medical Assistance
WDC (cont’d)
Average Program Profiles





Food Stamps
35 yr. old Black male, HS/GED, temporary employment history with
annual wages of $10,000.
Child Care Assistance
20-30 yr. old female with 1 or more children with annual wages of
$16,000
W2 (cash payments)
25-29 yr. old female, 2 to 3 children, HS/GED, employed in retail or
health care (CNA) with annual wages of $18,000
Children First Program
27 yr. old Black male, w/o HS/GED, temporary employment history, with
annual wages of $12,000
Re-training
Male with average annual wages of $5,000
Profile of the “working poor”




December 08
Gender
49% Male
51% Female
Employment Status
80% Unemployed
Race
45% White
45% Black
Age
79% 23-54 yrs. old




Source: WDC Quarterly Surveys
December 07
Gender
37% Male
63% Female
Employment Status
81% Unemployed
Race
38% White
44% Black
Age
78% 23-54 yrs. old
Profile of the “working poor”
December 2008


December 2007
20% <HS/GED
Educational Level
23% < HS/GED
47% >HS/GED
35% >HS/GED
Educational Level
Income


64% < $10,00
20% >$10,000 - $20,000
54% < $10,000
25% >$10,000 - $20,000

Seeking Employment
71% - part-time, operator,
assembly, skilled trades and
service industry
51% - driver’s license
Source: WDC Quarterly Report
Income

Seeking Employment
54% - part-time, operator,
assembly, skilled
trades and service industry
58% - driver’s license
Poverty on a budget
•Poverty USA Video
Source: YouTube Video
Work Readiness Challenges of the
Working Poor







Financial: Money to purchase goods and services.
Emotional resources: Ability to choose and control emotional responses,
particularly to negative situations.
Mental resources: Mental abilities and acquired skills (reading, writing
and computing) to deal with daily life.
Support systems: Having friends, family and backup resources available
in times of need.
Role models: Having access to adults who are appropriate and who do not
engage in self-destructive behavior.
Knowledge of hidden rules: Knowing the unspoken cues and habits of a
group.
Coping strategies: Ability to translate from personal to the issue.
Source: Bridges out of Poverty, Payne, DeVol, Dreussi Smith
Scenario #1
Sue recently graduated with an LPN credential.
She’s obtained a job in Kenosha 15 miles from her
home in Racine. While attending school she lived
with her mother who cared for her children, but she
has moved in with her boyfriend who is also the
father of two of her four children. She depends on
her boyfriend for transportation to and from work
and he picks her children up from school. Sue and
her mom are not talking since her boyfriend insulted
her mom. Sue has used all her sick days and has
been late for work several times.
Scenario #1 (cont’d)
Sue gets a collect call at work from her
boyfriend. He’s unable to pick her kids up
from school. Jane leaves work to pick-up her
kids and returns the next day to find she has
been terminated.
What work readiness challenges does Sue
face?
Scenario #2
John is a 25-year-old high school drop-out
who has been accepted into a 14-week, 5-day
a week, 8-hour-a-day training program. Upon
completion of the program, he will have a
95% chance of obtaining employment with a
salary of $13.50/hr. The only caveats are he
must attend every day, must be on time and
must complete the program with a passing
grade.
Scenario #2 (cont’d)
On week ten of the program, John doesn’t
show up. His mother calls at 1:00 p.m. to
report he was placed in custody over the
weekend for failure to pay child support.
Further, he will not be released until he pays
arrears of $5,000.
What work readiness challenges does John
face?
Scenario #3
Mary is a 26 year old woman with three children. She is on probation for assaulting her exboyfriend’s new girlfriend and her 10-year-old son is on supervision for hitting his teacher.
Mary has been on and off public assistance since her first child was born. She’s currently
receiving food stamps, child care assistance, and medical assistance.
Mary has the following obligations and she doesn’t have a valid driver’s license or a vehicle:
1) She must comply with an employability plan that includes spending 32 hours a week
searching for employment.
2) She must attend monthly meetings with her probation agent and must pay $100 a month
towards $3,000 in court-ordered restitution.
3) She must attend monthly appointments with her 10-year-old son’s social worker.
4) She must attend weekly anger management counseling and family counseling sessions.
What work readiness and life challenges does Mary face?
Scenario #4
Larry was a participant in CNC Boot Camp #2. Prior to Boot
Camp, he had been imprisoned for three years. While
incarcerated, he earned his HSED, passed food service
certification coursework and earned a welding certificate.
After his release, he held a temporary assignment for six
months earning 5.75 per hour. He was concerned that his
criminal background, work history, and lack of education
would prevent him from carving out a stable future. In his
own words, he wanted “to achieve a better life for my family
as well as myself.” He also wanted “to reach my goals of
being a better man and a positive role model in the
community.” He was receiving FoodStamps.
Scenario #4 (cont’d)
Larry successfully completed our CNC Boot Camp in early August 2005
and accepted an offer to work at Pioneer Products through a temporary
agency earning 10.00/hr. The following he was hired permanently and
has worked continuously since with the same employer. Until the recent
economic downturn, he was able to schedule regular overtime. He now
earns 11.50/hr and is able to provide for his family and afford some of the
extras that had always been out of reach. He is not only one of our
success stories, but the company hiring him likes to quote his story as one
of their successes also. They recognized his potential, invested in his onthe-job training, and are pleased with his work. He meets or exceeds
standards for both quality and production numbers. So far, he has not
been affected by the layoffs.
Racine Poverty Data

Those without a high school diploma
12.6% of total population
 25.1% of those living below the poverty level


Women
51.4% of total population
 58.5% of those living below the poverty level

Weekly earnings of full-time workers
25 or older
Average Annual Salary

Average annual salary (2005 wages)
Less than high school
 High school
 Difference


Lifetime difference

$362,000
$21,268
$30,316
$ 9,048
Graduation rates and reduced lunch
rates
 RUSD
between 2001 – 2007
Graduation Rate 71 to 79 percent
 Eligible for free or reduced lunch 60 to 68 percent

 Wisconsin
Public School Average 2001 – 2007
Graduation rate 89 to 92 percent
 Eligible for free or reduced lunch 24 to 31 percent

 Inverse
relationship between low graduation and
eligibility for free or reduced lunch
Contract information
Contact Information:
Alice Y. Oliver
1717 Taylor Avenue
Racine, WI
(262) 638-6620
Alice.Oliver@goracine.org